Congressman Adrian Smith says the failure of CoOportunity Health raises serious questions about the Affordable Care Act.
CoOportunity will be liquidated at the end of the month after the Iowa Insurance Commissioner, charged with attempting to rehabilitate the non-profit health insurance cooperative, told a court it couldn’t be saved.
CoOportunity received $146 million in federal funds under the Affordable Care Act. It began issuing health coverage in Iowa and Nebraska in 2013. Simply put, medical claims made against insurance policies issued by CoOportunity greatly exceeded its ability to pay. The Iowa Division of Insurance expects to wind down company operations under court supervision. Health guaranty associations will pay the claims made in both states.
Smith says the collapse of CoOportunity disturbs him.
“So, taxpayer dollars have been spent and now it appears that many Nebraskans and Iowans will be without health insurance, all as a result of Obamacare,” Smith tells Nebraska Radio Network.
Smith has written Health Secretary Sylvia Burwell seeking answers for what the 40,000 Nebraskans now without health insurance need to do.
“With all of the millions of dollars being used and apparently that’s not even enough to sustain this co-op, we have a lot of questions,” Smith says.
CoOportunity was one of 23 co-ops established under the health care law.
Smith says the fate of CoOportunity raises fundamental questions about the sustainability of the Affordable Care Act.
AUDIO: Brent Martin reports [:45]